Protecting Your Dealership - Lessons from the June 2024 CDK Cyber Attack

June 25, 2024| Zach Klempf


The recent cyberattack on CDK Global has been a wake-up call for auto dealerships across the United States. This incident, which halted operations for around 15,000 dealerships, highlights the crucial need for robust cybersecurity measures. As a used car dealer, ensuring your business’s security and continuity should be a top priority. Given these events, now is the perfect time for used car dealerships to reassess their current systems and fortify their cybersecurity measures. The first step in safeguarding your dealership is understanding the nature of the threat. Cyberattacks can target various aspects of your business, from customer data to transaction records. Recognizing the potential risks allows you to implement effective security measures.  Here's what you need to know and how you can protect your dealership from similar threats.

Start by evaluating your current dealership management system (DMS). How secure is it? Does it have robust protections against cyber threats? If your system lacks advanced security features, it may be time to consider upgrading to a more secure platform. Look for a DMS that prioritizes cybersecurity and offers features like encryption, multi-factor authentication, and regular security updates. Training your staff is another critical aspect of enhancing your dealership's security. Cybersecurity is not just the responsibility of your IT department; it involves everyone in your organization. Conduct regular training sessions to educate your employees about common cyber threats, such as phishing scams and ransomware attacks. Ensure that they understand the importance of following best practices, such as creating strong passwords and recognizing suspicious emails.

Implementing a comprehensive cybersecurity strategy also involves regular system updates and backups. Ensure that all your software, including your DMS and any third-party applications, are up-to-date with the latest security patches. Regular backups of your data are essential. In the event of a cyberattack, having recent backups can minimize downtime and data loss. Another crucial step is to work with reputable cybersecurity firms. These experts can help you assess your current security measures, identify vulnerabilities, and implement stronger protections. They can also monitor your systems for unusual activity and respond quickly to any threats. Investing in professional cybersecurity services might seem like an added expense, but it is a vital investment in the long-term safety of your dealership.

Communication is key in times of crisis. In the event of a cyberattack, having a clear communication plan in place can help mitigate the impact. Inform your employees about the situation and provide them with guidelines on how to continue operations securely. Additionally, communicate transparently with your customers. Reassure them that their data is being protected and that you are taking all necessary steps to resolve the issue. It's also important to learn from incidents like the CDK cyberattack. Stay informed about industry trends and cybersecurity news. Understanding how and why these attacks occur can help you stay one step ahead of potential threats. Regularly reviewing and updating your security measures based on the latest information is crucial.

As a used car dealer, you might not have considered cybersecurity a top priority in the past. However, the CDK incident has shown that even large auto software companies are not immune to cyber threats. Taking proactive steps to secure your systems, train your staff, and work with cybersecurity professionals can help protect your business from future attacks. By understanding the risks, upgrading your systems, training your staff, and working with experts, you can safeguard your dealership from similar threats. Don’t wait for an attack to happen; take action now to protect your business and ensure its continuity.

Tags: used car dealers automotive industry auto industry used car dealer license used car market independent dealership cdk attack cyber attack cyber security

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